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Monday, 12 October 2015

GBPCAD Short for 50% fib

Another course post, in reply to another student.

I have come a little late to this target, and can't fault your logic with TP1 1.97479 and TP2 1.94274.

Looking at the longer view, there is an intermediate profit target of 1.95633, being the 50% fib from the April 2015 low. As the 61.8% line has been breached, I expect this target to be reached (although arguably there as not been much fib resistance this year so far)

I have therefore entered short, one contract, at market (1.99011), stop loss 2.01 (just above the last high, and of course the psychological 2.00), with a target of 1.95633, RR 199:338 = 1.7:1